Not all business-banking products are tailor-made for SMEs. However, there are efforts by the banking industry to address as many of a business owner’s needs as possible. ADCB is one such bank making headway in the drive to engage with this segment.

Their specifically designed SME product suite, BusinessEdge , offers a comprehensive range of products and is targeted to incorporate the requirements across the SME spectrum within the UAE. So what are the banking elements contained within this Business Edge package?

These products range from current accounts, call accounts, term deposits, working capital solutions, enterprise credit, to unsecured business loans, pre-approved business loans and commercial real estate funding.

It also offers the option of specific end-use defined products, in terms of asset-backed finance, for purchase of commercial vehicles, construction equipment, medical equipment, professional printing equipment, compressors, generators and so on.

ADCB have also ensured that all these products fall within Shariah-compliant variants through the bank’s Islamic Banking Department. To further reinforce the reach to the SME community and its commercial segment of customers, 17 SME sales and service desks have been established across key branches.

So are there any conditions, in terms of average balances, that SMEs need to fulfil in order to qualify for this option? The Business Edge current account offers five packages – Premium, Preferred, Platinum, Priority and Elite, with minimum average balances ranging from AED 50,000 to AED one million, so that the smallest business to the largest mid size enterprise can avail of these offerings. In addition, accounts are available in Dirhams, as well as other leading currencies such as Euros, US Dollars and the British Pound Sterling.

And for those business owners who travel extensively and are on-the-go, ADCB also offers a fast and efficient Internet banking platform that enables real time access to customers.

Credit facilities
SMEs require day-to-day working capital. As the business grows, owners need to keep pace with increasing financial demands. ADCB’s Enterprise Credit is a flexible business banking product created to take care of the working capital and short-term funding needs.

The facilities are available to companies with an annual sales turnover of up to AED 100 million, with the credit facility accommodating up to AED 25 million. The collateral requirements are relatively flexible, with residential or commercial properties, SBLC, cash or cash equivalent accepted as collateral.

For those SMEs dealing with trade and export, there is the option of specific customised products, which include pre- shipment finance for exporters, invoice discounting for suppliers and contractors of government institutions and back-to- back LC.

ADCB also offers ProTrade , an online platform to clients for trade finance, allowing customers to manage their trade transactions from anywhere at any time. The new system offers clients quicker turnaround time and increased productivity by providing the opportunity to initiate transactions, as well as receiving notifications, from ADCB 24 hours a day, seven days a week.

It also allows clients to completely manage online all their import and export letters of credit, bank guarantees and other trade finance services, receive information on status of transactions in real time or, via email, and ensure complete security of access through ProTrade using secure 128 bit encryption.

Fast financing
Every business encounters unforeseen financial requirements. BusinessEdge InstaLoan enables businesses to arrange urgent unsecured finance quickly and easily, giving SMEs more time to focus on their business.

The loan amounts can range from AED 1.5 million for UAE nationals and AED 1 million for expat owned busiesses, with no fixed deposit or cash margin required. With competitive interest rates and flexible repayment plans by way of nstalments, this kind of financing can be accessed by SMEs with a fast turnaround time and minimum documentation.

Alternatively, SMEs with at least a six months current account with ADCB can set-up a pre-approved loan facility that enables them to arrange unsecured finance when they need it most. The BusinessEdge Advantage Loan also does not require a fixed deposit, or any other cash collateral, and the principal loan amount outstanding after 12 months can be converted into an overdraft facility along with a top-up.

In this instance the loan amount can range from AED 100,000 to AED 250,000 and will be assessed based on current account transaction history.

Equipment and vehicle finance
For commercial vehicle loans, construction equipment loans, medical equipment loans and professional equipment (loans for printing equipment) ADCB have introduced the BusinessEdge Asset-Backed Finance option. The facility offers funding of up to 90% of the equipment or vehicle cost at competitive rates, with simple documentation and a quick turnaround time. This offer is not only for new equipment but also pre-owned.

Quick facts
• ADCB possesses a network of over 50 branches and 290 ATMs across the UAE and India
• 17 dedicated SME centres across the UAE and a team of relationship managers to service its custo

SME Advisor Middle East is aimed at business owners and senior executives across the GCC. Armed with practical advice, it has been highlighting key business issues for the small and medium enterprise segment since its launch in 2005.